MARKET COMMENTARY
As the week’s trading session commences, sharp plunges in the natural rubber prices is being witnessed in the global market. Amidst swelling natural rubber stockpiles in China and Japan, worries over global economic recovery along with appreciating Japanese yen dragged down prices. Rubber stockpiles at Qingdao port in China were at a record high of 366900 tonnes. Steep plunges in crude oil and other industrial commodities added further pressure. TOCOM rubber tumbled over six per cent while on SHFE rubber futures hit the downside daily price limit.
Sharp sell-off being witnessed in the overseas market is likely to drag down natural rubber prices in the local market in the coming session. Last week, natural rubber prices in the Indian market were caught in narrow ranges as limited arrival to the market has been restricting steep downside in prices. However, the broad trend stayed bearish on underlying weak market fundamentals.
MARKET NEWS
Natural rubber imports by India surged to a record high to hit 216642 tonnes in FY’13. Consumption and production showed only a marginal rise during the same period, at 971980 and 912200 tonnes respectively.
Rubber stockpiles at Qingdao, China’s largest hub for the tropical commodity, rose to a record 366,900 tons by April 15 according to the Qingdao International Rubber Exchange Market.
Rubber inventories in the warehouses monitored by SHFE dipped 0.1% to 117385 tonnes last week.
Thailand, Indonesia and Malaysia, the top rubber suppliers, cut exports by 300,000 metric tons as targeted and will discuss replanting as a complementary measure, according to the International Tripartite Rubber Council.
Thailand and Malaysia will collaborate in setting up rubber industry zones on both sides of the common border in order to create jobs and income for citizens of both nations.
Thailand targets to lower shipments of rubber by 10% through end of May to help support prices, says Thai deputy farm minister Yuttapong Charasathien.
Crude rubber stockpiles held at Japanese warehouses rose 6.7 percent to 15,799 metric tons on March 31, according to data from the Rubber Trade Association of Japan.
TECHNICAL VIEW
RUBBER May NMCE
Broad Trend: Seen weak.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16400/16550 |
16400-15900 |
16100-16040 |
|
16700/16860 |
|
15900/15800 |
|
16950/17050 |
|
15650/15480 |
Source: Geojit Comtrade
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